U.S. Senator Richard Blumenthal (D-Conn.), the top Democrat on the Senate Permanent Subcommittee on Investigations, has opened a formal inquiry into Binance after reporting that the world’s largest crypto exchange facilitated roughly $1.7 billion in transfers tied to Iranian entities and Russia’s sanctions‑evading oil trade.
The probe follows a Wall Street Journal investigation that, the senator says, revealed Binance internal investigators traced transfers from platform accounts to intermediaries linked to Iran — including wallets associated with the Islamic Revolutionary Guard Corps and payments tied to Russia’s so‑called “shadow fleet” of oil tankers. The reporting identified two Hong Kong‑based partners, Hexa Whale and Blessed Trust, as conduits for some of the transactions and said investigators flagged roughly 2,000 accounts tied to Iranian entities despite Binance’s official ban on Iranian users.
Blumenthal’s letter accuses Binance of ignoring warning signs, allowing illicit accounts to operate, and reportedly “providing hands‑on support to entities engaged in money laundering.” He also raised concerns about the suspension or dismissal of compliance staff who reportedly raised red flags during the internal probe. “The scale of the newly revealed illicit transfers — uncaught until nearly two billion dollars flowed to sanctioned entities — and the unexplained firing of internal investigators call into question Binance’s compliance with American sanctions and banking laws,” Blumenthal wrote.
Binance has pushed back strongly. CEO Richard Teng accused the Wall Street Journal on Twitter of publishing “defamatory claims” and said the outlet ignored corrections the company provided. In a legal letter to the paper, Binance demanded immediate corrections and the retraction of what it called “false information.” The company told regulators and the press that its own review found no evidence of violations, that any linked accounts were removed, and that it stopped working with Blessed Trust in January. Binance also said its sanctions exposure is minimal and that it detected and reported suspicious activity.
The senator’s office requested extensive documentation from Binance by March 6, 2026. The materials sought include records related to Hexa Whale and Blessed Trust, internal reports and communications about Iranian and Russian‑linked accounts, records on the use of Tether and the USD1 stablecoin in potential sanctions evasion, and files regarding the suspension or dismissal of compliance personnel involved in the investigations. Blumenthal additionally highlighted Binance’s ties to World Liberty Financial — a crypto venture associated with the family of President Donald Trump — suggesting the company has tried to influence policymakers while under scrutiny.
This latest controversy arrives against a backdrop of prior regulatory action. Binance pleaded guilty in 2023 to violating U.S. anti‑money‑laundering and sanctions requirements, agreed to pay $4.3 billion in penalties, and exited the U.S. market. Founder Changpeng “CZ” Zhao received a four‑month prison sentence for his role in those violations and was later granted a presidential pardon in October 2025.
Binance serves tens of millions of users worldwide and has repeatedly said it has beefed up compliance controls in recent years. Still, the allegations in the WSJ report and Blumenthal’s subsequent inquiry will likely draw renewed attention from U.S. lawmakers and regulators.
Decrypt has reached out to Binance for comment and will update this story if the exchange responds.
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